Cart (0)
business newsMidday Market Report: Weak Housing Data Weighs Down Stocks
By
Vincent Trivett
Feb 22, 2012 1:20 pm
Existing home sales are just taking off, but not by enough.
PRINT
Weak manufacturing and service sector data, along with uncertainty over the Greek bailout deal, pushed European stocks down today. Fitch ratings downgraded Greece earlier today, saying that Greece is likely to default very soon and leave the euro. Fitch is not alone in that opinion.
The lackluster economic data from both sides of the pond put downward pressure on US stocks.
Dell (DELL) shares fell 5.8% this morning after the computer maker reported worse-than-expected earnings yesterday.
Netflix (NFLX) stock declined nearly 7% after Comcast (CMCSA) announced that it is developing a subscription video streaming service to compete with Netflix. The service will be called “Streampix,” and only Comcast subscribers will have access to it. (See Netflix Killers? Not So Fast.)
Treasury Secretary Timothy Geithner revealed President Barack Obama’s proposed overhaul of the corporate tax rate today. The administration seeks to lower America’s high tax rate from 35% to 28%. The high rate gives incentives to US companies to transfer operations to low-tax countries such as Ireland, where the corporate tax rate is just 12.5%. Currently, plenty of profitable corporations pay far less than 35%; some pay no tax at all. The plan aims to clear tax loopholes and subsidies, establish a minimum tax on foreign earnings, and allow small businesses to expense up to $1 million in investments. Manufacturing will be taxed even less, at 25%. Most of the details of the plan will be left up to Congress.
Twitter: @vincent_trivett
- The FTSE 100 (^FTSE) fell 0.20% to 5,916.55.
- The DAX (^GDAXI) fell 0.93% to 6,843.87.
- The CAC (^FCHI) slipped 0.52% to 3,447.37.
The lackluster economic data from both sides of the pond put downward pressure on US stocks.
- The Dow (^DJI), after reaching 13,000 yesterday, fell 0.30 by midday to 12,996.22.
- The S&P 500 (SPY) fell 0.36% to 1,357.28.
- The NASDAQ (^IXIC) dropped 0.53% to 2,933.04.
Dell (DELL) shares fell 5.8% this morning after the computer maker reported worse-than-expected earnings yesterday.
Netflix (NFLX) stock declined nearly 7% after Comcast (CMCSA) announced that it is developing a subscription video streaming service to compete with Netflix. The service will be called “Streampix,” and only Comcast subscribers will have access to it. (See Netflix Killers? Not So Fast.)
Treasury Secretary Timothy Geithner revealed President Barack Obama’s proposed overhaul of the corporate tax rate today. The administration seeks to lower America’s high tax rate from 35% to 28%. The high rate gives incentives to US companies to transfer operations to low-tax countries such as Ireland, where the corporate tax rate is just 12.5%. Currently, plenty of profitable corporations pay far less than 35%; some pay no tax at all. The plan aims to clear tax loopholes and subsidies, establish a minimum tax on foreign earnings, and allow small businesses to expense up to $1 million in investments. Manufacturing will be taxed even less, at 25%. Most of the details of the plan will be left up to Congress.
Twitter: @vincent_trivett
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
